A
number of investors in two former Deutsche Bank
AG investment funds filed suit against the company
and several of its units, alleging mismanagement
and concealment of material adverse information.
The lawsuits, which seek compensatory and punitive
damages, name Deutsche Bank and its units Alex.Brown
Management Services and Deutsche Bank Securities,
as well as members of the funds' management committee.
In addition, the suits name the sub-adviser to
the funds, DC Investment Partners, and two of its
managing members and part owners.
The
plaintiffs charge that management of the two DB Alex
Brown exchange funds failed to build diversified
investment portfolios, to implement and follow a
promised hedging strategy to limit risk and to inform
investors of those failures and their impact on the
funds' performance. The lawsuits, filed in the Superior
Court of Delaware, further claim the funds' management
tried to conceal the problems and, as the funds were
failing, ceased all formal reporting to investors
for more than a year. |
